The Central Board of Direct Taxes has notified the new ITR Forms for AY 2019-20 Income Tax Return Filing (for FY 2018-19).
The new ITR forms in PDF format have been made available, while the excel utilities (or) Java Utilities for AY 2019-20 will soon be made available on incometaxindia e-filing website.
What is Assessment Year (AY) & Financial Year (FY)?
Financial year (FY) is the year in which you have earned the income. If you are filing a return this year, the financial year will be 2018-19.
For example, if you have had an income between 1st April 2018 and 31 March 2019, then 2018-19 will be referred to as FY. Assessment Year (AY) is the year in which you file returns i.e., 2019-20.
If your Income Tax Return is not subject to any Tax Audit, the due date for Tax Filing is 31st July, 2019 (as of now).
Income Tax Slab Rates for FY 2018-19 / AY 2019-20
The income tax slabs & rates are categorized as below;
- Individual resident aged below 60 years.
- Senior Citizen (Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year) &.
- Super Senior Citizen (Individual resident who is of the age of 80 years or more at any time during the previous year).
AY 2019-20 Income Tax Return Filing | New ITR Forms
While there has been no change in ITR-1 or Sahaj, which is to be filled by the salaried class, some sections in ITR 2, 3, 5, 6 and 7 have been rationalised. Below are some of the important details about new ITR forms;
- For FY 2018-19, a standard deduction of Rs 40,000 in lieu of travel & medical expense reimbursement has been proposed for salaried employees and pensioners. So, you need to consider this deduction in your ITR.
- A new Section 80TTB has been introduced in FY 2018-19. For Senior Citizens, the Interest income earned on Fixed Deposits & Recurring Deposits (Banks / Post office schemes) is exempted up to Rs 50,000 (FY 2017-18 limit is up to Rs 10,000). This deduction can be claimed under new Section 80TTB.
- There was 3% cess on personal income tax (2% for primary education and 1% for secondary and higher education) for AY 2018-19. This will be replaced with 4% Health & Education Cess for ITR filing AY 2019-20.
- The premium paid on health insurance plans by senior citizens of up to Rs 50,000 can be claimed as tax deduction under Section 80D.
- The limit under section 80DDB has been increased to Rs 1 lakh towards medical expenses, for treatment of Critical Illnesses.
- LTCG tax at 10% on gains of above Rs 1 lakh from Equities & Equity mutual funds has to be shown in applicable ITR form.
- Additional details for Residential Status (in ITR 2 and 3) have to be reported for AY 2019-20.
- Those filing ITR-3 and ITR-6 (companies) will have to disclose information regarding turnover / gross receipts reported for Goods and Services Tax included now in ITR-3 and ITR- 6 also. Last year, it was applicable only for those assessees filing ITR-4.
- Those getting money in the form of donation would have to give details of the name of donors, their address and PAN.
- The Taxpayers having an agricultural income (above Rs 5 lakh) need to file ITR-2 with details of the and, the name of the district when he owns the land and the PIN. They will also have to share details of the ownership of the land, whether it is irrigated or dependent on rainwater.
- The Prescribed details of buyer need to be provided in case of transfer of any immovable property in ITR Form 2 & 3.
- The disclosure regarding deemed let out property has been introduced to identify cases where rental income has been offered on a notional basis. Further, the assessee is also required to quote PAN/TAN of the tenant (if TDS credit is claimed).
- Column A, which deals with the details of foreign bank account in ITR Form 2 & 3, has been reframed to include the details of foreign depository account, foreign custodian accounts, foreign equity and debt interest, foreign cash value insurance contract or annuity contract etc.
AY 2019-20 Income Tax Return Filing | Which ITR form to file?
Who can file New ITR 1 (Sahaj) Form For Assessment Year 2019-20?
- ITR-1 Form can be used if you have;
- Salary or Pension Income
- Income from one house property (excluding cases where loss is brought forward from previous years)
- No business income / no Capital gains
- No asset in foreign country or no income from a source outside India
- Agricultural income which is less than Rs 5,000
- Income from other sources like FD/Shares/NSC etc.,
- No income from lottery or horse racing.TR Form-1 (Sahaj) can be filed by an individual who is resident other than not ordinarily resident, having income upto Rs 50 lakh and who is receiving income from salary, one house property / other income (interest etc.).
Who can file New ITR 2 Form for Assessment year 2019-20?
- ITR2 form can be filed by an Individual or Hindu Undivided Family (HUF). This form can be used if you have;
- Salary or Pension Income
- Income under the head ‘Capital Gains’
- Income from multiple houses
- No business / professional income under any proprietorship
- An asset in foreign country or income from a source outside India
- Agricultural income of more than Rs 5,000
- Income from lottery or horse racing
- If your income is more than Rs 50 Lakh, ITR 2 has a Schedule AL requiring assessees to declare their assets and liabilities at the end of the fiscal.
Who can file New ITR 3 Form for Assessment year 2019-20?
- New ITR 3 form is for individuals and HUFs having income from a proprietary business or profession (or having income as a partner in a Partnership firm).
- This ITR covers all kind of businesses and professions irrespective of any income limit. Assessee can also report his income from salary, multiple house properties, lottery winnings, capital gains, speculative income i.e. horse race in ITR3 together with the Business Income.
Who can file ITR 4 Sugam Form for AY 2019-20?
- This form can be used by individuals who have;
- For Individuals, HUFs and Firms (other than LLP) being a resident having total income upto Rs.50 lakh and having income from business and profession
- No Capital Gains
- Agricultural Income which is less than Rs 5k
- No asset in foreign country or no income from a source outside India
- Income from one house property
- Income from other sources
Important points to consider before filing your ITR :
- Before you file your Income Tax returns, check if your Form 26 AS has correct TDS entries.
- For example: Your employer might have deducted TDS amount for last quarter and deposited the amount on your behalf. Check for this transaction in Form 26 AS. Also, check whether all the investments with TDS have been duly mentioned in your Tax return form also. Any mismatch will lead to a notice from the department.
- Do not file your ITR till you get Form-16 (issued by your employer, if salaried) and Form 16A. While Form 16 is for only salary income, Form 16A is applicable for TDS on Income Other than Salary. Form 16A is a statement containing all details of TDS Deducted on all Payments except Salary. For example, Form 16A is issued by banks when they deduct TDS on interest income earned on your Fixed Deposits / Recurring Deposits.
- Form16, Form 16A and Form 26AS documents will come handy while filing your ITR. As discussed above, you have most of the details in your form 16 with which you can easily file your Tax Returns. Cross check your Form 16/16A TDS amounts with Form 26AS and then key in TDS details in ITR accordingly.
- Based on Form 16, you can fill ‘Income’ and ‘TDS’ details. By looking at your Form 16 A, you can fill ‘income from other sources’ and ‘TDS’ details in ITR sheet.
- Based on Form26 AS, you can cross check the above TDS payments and also fill in details of ‘Advance or self assessment tax’ payments (if any) in your ITR sheet. (Related Article : ‘Understanding your Form 16 & other Tax related forms – Form 16A & Form 26AS‘)
- If you had joined a new company during the financial year then do not forget to declare the income from previous employer in the tax return.
- You might have earned interest income on Bank fixed deposits, Bonds, National Saving Certificates (NSCs) etc., This income is taxable. (Interest earned on bank savings account is exempted upto Rs 10,000 but it should be included in filing). You have to declare all these incomes in your tax return.
- In case, if your declared investment amount (to your employer) is more than your actual investments, you have to pay additional taxes while filing your Income Tax Return
- In case, if your declared amount is less than your actual investments, your company might have deducted higher TDS. So, you can claim this as ‘refund‘ while filing your taxes. (Kindly read : ‘TDS & Misconceptions‘)
- Even if you miss the deadline for submitting the investment proofs, you can still claim all the tax deductions while filing your Income Tax Return.
- It is advisable to keep copies of all your original documents for your future reference.
- If an income tax return is filed after the due date (July 31) but on or before the December 31 of the assessment year, there will be a fine of Rs 5,000. If the return is filed after December 31, there would be fine of Rs 10,000. After March 31, the returns cannot be filed. However, in case the total income is less than Rs 5 lakh, the penalty should not exceed Rs 1,000. (Related Article : ‘How many Previous Years’ Income Tax Returns can be filed after Due date?‘)
Continue reading :
- List of Important Income Tax Deductions AY 2019-20
- 10% LTCG Tax on sale of Stocks/Equity Mutual Funds
- Who has to file Income Tax Return in India?
- What is Defective Income Tax Return? How to respond to Defective Return Notice issued u/s 139(9)?
- Income Tax Return of Deceased person | How to file ITR for the deceased as a Legal Heir?
- How to reply to Non-Filing of Income Tax Return Notice?
- How Income Tax Department tracks the High Value Financial Transactions?
(Post first published on : 05-April-2019)
(The above information is based on the limited available information, the details may be updated/edited if required.)